FSA launches scheme for Arch Cru funds victims

The Financial Services Authority has launched a redress scheme for 15,000 victims of the Arch Cru funds mis-selling scandal.

It could lead to investors being paid compensation of more than £100m by the financial advice firms which sold the funds.

The money will be in addition to the £54m payment scheme announced last year, involving Capita Financial Managers and the two depositary companies, BNY Mellon and HSBC.

The FSA said there was evidence of widespread mis-selling of the high-risk Arch Cru funds, which were suspended in 2009.

Advice firms which mis-sold the funds will be forced to put customers back in the position they expected to be when they took advice.